M&A Boom Goes Bust on Regulatory Uncertainty

The video discusses the uncertain M&A market in 2016 compared to 2015, highlighting factors that contribute to growth, such as access to capital and cheap debt. It also examines constraints like tax inversion rules and regulatory scrutiny, which limit deal size and number. The discussion emphasizes the impact of uncertainty on deal activity.

What characterized the M&A market in 2016 compared to 2015?

• Greater uncertainty and market instability

• A decline in the number of deals

• A record deal year similar to 2015

• Increased certainty and stability

Which of the following is NOT mentioned as a factor contributing to M&A growth?

• Access to capital

• High interest rates

• Cheap debt

• Cash reserves

What is one of the main reasons for the constraints on M&A activities?

• Regulatory scrutiny and tax inversion rules

• Lack of interest from investors

• Decreasing company valuations

• High inflation rates

How do tax inversion rules affect M&A deals?

• They increase the number of deals

• They have no impact on deal size

• They make deals more profitable

• They constrain both the number and size of deals

What effect does market uncertainty have on M&A activities?

• It accelerates dealmaking

• It guarantees higher returns

• It has no effect

• It hinders deal activity